FM MEDIA & MARKETING LTD

Executive Summary

FM MEDIA & MARKETING LTD shows modest asset growth and positive net current assets but faces liquidity pressure due to zero cash balances and increased debtors. The company is operationally stable with no compliance issues but requires close cash flow monitoring. Conditional approval is advised, contingent on improved liquidity management and regular financial performance reviews.

FM MEDIA & MARKETING LTD - Analysis Report

Company Number: 13118010

Analysis Date: 2025-07-20 12:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   FM MEDIA & MARKETING LTD is a small private limited company operating in business support services, with a short trading history since incorporation in 2021. The company demonstrates modest but positive net assets and working capital, with no overdue filings or audit exceptions, which supports operational continuity. However, very limited cash on hand and reliance on debtors as current assets pose liquidity risks. Approval is recommended with conditions including close monitoring of cash flow and receivables collection, and periodic review of financial performance to ensure improved liquidity and profitability.

2. Financial Strength:
   The company’s net assets have risen slightly from £94 in 2023 to £297 in 2024, indicating marginal growth. Shareholders’ funds mirror net assets, showing a very lean equity base. Fixed assets appear negligible or unreported, consistent with a service-oriented SME. Current liabilities slightly increased but remain broadly matched by current assets, yielding a positive but very slim net current asset position (£297). The minimal share capital of £1 indicates limited capital injection. Overall, the balance sheet is stable but fragile, with low financial buffer to absorb shocks.

3. Cash Flow Assessment:
   Cash at bank dropped from £4,104 in 2023 to zero in 2024, while debtors increased significantly from £982 to £6,854, suggesting potential delays in cash collection or increasing credit sales. The absence of cash poses immediate liquidity concerns, especially as current liabilities remain at £6,557. The company’s working capital is positive but marginal, and its liquidity risk is high if receivables are not converted quickly to cash. There is only one employee, indicating low fixed overhead costs, which somewhat mitigates cash burn risk.

4. Monitoring Points:

• Monitor debtor aging closely to assess collectability and avoid cash flow bottlenecks.
• Track cash balances monthly to ensure liquidity sufficiency for operational expenses.
• Review profitability trends and any build-up of liabilities or accruals that could stress liquidity.
• Confirm continuation of timely filings and compliance to avoid regulatory penalties.
• Evaluate management’s plans for improving cash generation and capital structure.